Founded in 2012, the startup's core focus area is in power management, primarily in LED drivers and voltage regulators. NEW DELHI: Global semiconductor capital spending is expected to increase 2.9 percent to $69.9 billion in 2017 which is down from 5.1 percent growth in 2016, Gartner said on Friday.

The report stated that the semiconductor outlook has improved in comparison with early 2016, owing to stronger pricing and better market for smartphones. A recovery in memory and changes in vital applications are anticipated to lead growth in 2017.

However, Gartner has predicted that the semiconductor capital spending will witness slump by 2020 where it will fall to $75.7 billion after reaching a peak of $78.3 billion in 2019. The year 2019 has also been predicted as the year witnessing maximum overall growth in the semiconductor capital spending and equipment spending.

"The stronger growth in 2016 was fueled by Increased spending in late 2016 which can be attributed to a NAND flash shortage which was more severe in late 2016 and will persist though most of 2017. This is due to a better-than-expected market for smartphones, which is driving an upgrade of NAND spending in our latest forecast," said David Christensen, senior research analyst at Gartner.